Donations for overseas development: evidence from a panel of UK charities

Arulampalam, W., Backus, P.G. and Micklewright, J. (2009) Donations for overseas development: evidence from a panel of UK charities , Southampton, UK Southampton Statistical Sciences Research Institute 30pp. (S3RI Applications & Policy Working Papers, A09/02).


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We model the determinants of donations made to UK overseas development charities using panel data on charities’ donation income covering a 25 year period. The paper starts by reviewing relevant theory and previous empirical work on donations to UK charities before outlining a framework in which donations are a function of fundraising, government grants, total household income, inequality in household income, disasters, Official Development Assistance, and unobserved fixed characteristics of charities. Models are estimated by the within groups estimator and also by Generalised Method of Moments (GMM). When using the GMM approach, fundraising and government grants are allowed to be endogenous. Fundraising has a powerful effect. Government grants appear to crowd in rather than crowd out donations. No impact is found from ODA. The hypothesis of a unitary income elasticity for donations cannot be rejected. Results are compared with those for non-development charities.

Item Type: Monograph (Working Paper)
Keywords: charitable donations, overseas development, panel data
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HV Social pathology. Social and public welfare
J Political Science > JZ International relations
ePrint ID: 65908
Date :
Date Event
27 March 2009Published
Date Deposited: 30 Mar 2009
Last Modified: 18 Apr 2017 21:47
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